Many financial experts advise Americans to delay claiming Social Security benefits until full retirement age or even age 70. The reason is simple: the longer you wait, the higher your monthly benefit can be.
For people born in 1960 or later, full retirement age is 67. Claiming at 62, the earliest age allowed, can permanently reduce monthly benefits by about 30%.
On the other hand, waiting until age 70 can increase benefits by roughly 24% compared with claiming at full retirement age.
For example, someone eligible for $2,000 per month at age 67 might receive only about $1,400 if they claim at 62. If they wait until 70, that benefit could rise to around $2,480.
Still, the best claiming age is not the same for everyone.
When Poor Health Changes The Decision
One situation where claiming Social Security at 62 may make sense is poor health. If someone does not expect to live long enough to benefit from delaying, taking payments early may provide needed income sooner.
In some cases, people with serious health problems may also qualify for Social Security Disability benefits. Applying can be difficult and approval may take time, but disability benefits may provide a better financial outcome than reduced retirement benefits at 62.
This is why health, life expectancy, and medical needs should all be considered before making a final decision.
Early Retirement Or Job Loss May Force The Issue
Claiming at 62 may also make sense for people who retire earlier than planned because of job loss, caregiving responsibilities, or financial hardship.
For many households, Social Security acts as an important safety net. If savings are limited and monthly bills cannot be covered, early benefits may help stabilize finances.
In this case, the decision is less about maximizing lifetime income and more about meeting immediate needs.
Married Couples Need A Careful Strategy
The decision becomes more complicated for married couples. Spouses may need to coordinate when each person claims benefits, especially if there is a large age gap or a big difference in earnings history.
Claiming early can also affect survivor benefits. If the higher-earning spouse claims at 62, the surviving spouse may receive less later than they would have if the worker had waited.
This is especially important for couples where one spouse depends heavily on the other’s Social Security record.
Future Social Security Changes Add Uncertainty
Some people may consider claiming early because they are worried about Social Security’s projected funding shortfall. Trustees estimate that by 2032, the program may only have enough revenue to pay about 78% of scheduled benefits unless Congress acts.
However, claiming early to avoid possible future changes involves guesswork. Lawmakers could protect current beneficiaries, adjust future benefits, raise revenue, or use a mix of reforms.
The risk is that someone may claim early, receive permanently reduced benefits, and then live longer than expected.
How To Make The Right Call
Before claiming, workers should review benefit estimates at different ages through an online Social Security account at ssa.gov. It may also help to speak with a financial adviser trained in retirement income and Social Security rules.
Claiming Social Security at 62 usually means accepting a permanently lower monthly benefit, but it can make sense in certain situations.
Poor health, early job loss, financial need, or family circumstances may make early claiming the right choice. Still, because the decision affects lifetime income, survivor benefits, and retirement security, it should be made carefully with a clear understanding of both short-term needs and long-term risks.